Analysis of the Public Procurement Procedures Alternativeness for the State Programs Financing Cover Image

Аналіз альтернативності процедур публічних закупівель для фінансування державних програм
Analysis of the Public Procurement Procedures Alternativeness for the State Programs Financing

Author(s): Iryna Drozd, Mariia Pysmenna
Subject(s): Economy, National Economy, Business Economy / Management, Micro-Economics, Public Finances, Socio-Economic Research
Published by: Центральноукраїнський національний технічний університет
Keywords: procurement procedures; public procurement; analysis; estimated value of purchases; quantitative indicators of purchases; monetary measures of purchases;

Summary/Abstract: Public procurement constitutes a significant part of the state budget expenditures of the public sector institutions. The issue of efficient use of money is related to the economical use of funds for the public procurement needs of the customer. Therefore, the purpose of this paper is to study the effectiveness of public procurement procedures by type, which will serve as the basis for the choice of alternative management decisions at the stage of planning the spending of the budgetary institution’s funds for their effective use. The results of the study are intended to provide greater transparency in public procurement activities.The task of choosing the acceptable procurement procedures, both in terms of legislation and for the purpose of economical use of funds, is relevant for the customers’ financial management. The study of the public procurement procedures’ alternatives was based on the research of their application practice in 2013-2018. The analysis of quantitative and cost indicators of procurement procedures under separate procedures: open bidding, two-stage bidding/competitive dialogue, requests for bids, pre-qualification of participants, and negotiated procurement procedure. The calculation of the procurement procedures efficiency is applied using the planned value of the expected value of public procurement. Directions to improve the public procurement analysis through alternative procedures evaluation in terms of their effectiveness are suggested.We used the conducted procurement procedures in accordance with the legally approved procedure for their application as a quantitative indicator of the procurement procedures evaluation. Incomplete or canceled procedures were excluded from the quantitative estimates for all periods studied. It is established that the vast majority of purchases were made through open auctions. We have used the amounts of contracts concluded as a result of successful procurement procedures to study the cost characteristics of procurement procedures.Value fluctuations have been established over the study period, which is explained by significant changes in the legislation regarding the regulation of the obligation to conduct procurement through tendering procedures.Therefore, the problem of analyzing the public procurement procedures alternatives is suggested to be solved by directing the organization of the expected value of procurement by those procedures, which allow obtaining the highest cost savings due to tendering on the electronic procurement system and achieving the goal of procurement through the optimal price/quality ratio.

  • Issue Year: 2019
  • Issue No: 2 (35)
  • Page Range: 216-225
  • Page Count: 10
  • Language: Ukrainian